Quote:
Originally Posted by CuppaJoe
In the mid-'70s I worked in the "lost and stolen" credit card dept. of a large bank. They covered virtually all losses.
When I had some internet fraud on a credit card about 2004, that mega-bank also covered the entire $500 loss and were unable to remove the points for that $500 so I got the $25 gift card sooner.
Banks make soooooo much money, they can do this.
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Yep. It's somewhat unsettling, but banks make so much money on credit cards that unless the amount involved in a particular incidence of fraud is absolutely staggering, they just write it off as a cost of doing business because that's cheaper than pursuing the fraud.
My Amex was compromised to the extent of about $3,000 a month ago. I gave them information about the intended shipping address of some of the fraudulent charges which I received from the customer service folks at a couple of the places where the charge failed to go through, but I doubt they pursued it.
Ultimately that gets passed on, perhaps some to merchants and some to people who don't pay their balance in full each month.